Uncategorized
SGX, SEL. Temasek, GIC, MOF, CPF – caught in a tangled web?
by Leong Sze Hian
I refer to the article “A loathsome deal that should be given bargepole treatment” (The Sydney Morning Herald”, Oct 29).
What struck me like a bolt of lightning when I read the article, was the following-
- “When you add up the arms and agencies with holdings and cross-holdings in the exchange, the Singapore government owns more than 30 per cent of the SGX”
- “The state’s sovereign investment arm, Temasek Holdings, has a big stake in the exchange”
- “Temasek is basically owned by the Ministry of Finance. The regulator of the exchange is the Monetary Authority of Singapore (MAS), which doubles as the central bank”
and
- “Immediately, there are legitimate perceptions of a conflict of interest as one government instrumentality is supposed to be having oversight of the stock exchange which, in turn, is required to deliver a healthy return to investors, including the government. It is into this carefully confected fiefdom that our securities exchange is being foisted”
Why are there such complications in the ownership of a supposedly private entity? From public sources, it seems like SEL Holdings, a special purpose vehicle under Temasek seems to be holding the SGX stocks belonging to the Financial Sector Development Fund, a fund that MAS administers to develop financial sector talent.(SEL is SGX’s largest shareholder with 249,991,184 shares or 23.45 per cent, valued at about $2.4 billion)
This raised a few question, namely –
- why are the Ministry of Finance and MAS both stakeholders of 25% of SGX?
- Does this mean that SGX is partially Government? Are there any stock exchanges in the world that have such arrangements?
- Is MAS or any government body allowed to exercise voting rights on it’s initial 25 per cent stake in SGX stocks? If not, why not?
- If the Ministry of Finance and MAS have decided to use a private entity to hold the SGX shares, why was a government linked company selected? Would it not be cleaner to use an entirely private entity?
As I understand that MAS’s SGX holdings are used to fund the Financial Sector Development Fund (Source: http://www.mas.gov.sg/resource/publications/development_fund/FY06%20Financial%20Stmts%20-%20FSDF.pdf), how is the fund utilized? How many schemes are there in the financial sector development fund? In this regard, how many jobs for Singaporeans have been created? How are the incentives administered? Are there any review and control mechanisms? How much and what proportion of the fund disbursed have gone to foreign companies? There should be transparency on this matter.
Given the conflicts of interest that have now been raised in the international media, in the light of the proposed acquisition of the Australian Stock Exchange by SGX, I would like to suggest that MAS consider selling its SGX stake and return the money to the Singapore Government or back into our national reserves.
In so doing, there may be greater accountability and transparency, and less international media scrutiny on the conflicts of interest that are being raised. In this regard, so long as perceived conflicts of interest remain, it may continue to hinder Singapore’s development and partnerships with foreign institutions, like ASX, Yale University, University of Warwick, etc.
On a related matter, the Government has been issuing gross debt by way of non-marketable Government securities to the Central Provident Fund (CPF) to match the 2.5 and 4 per cent interest on CPF accounts, as part of the Singapore Government Securities (SGS) programme.
The Government invests the proceeds raised through this issuance in foreign assets through the Government Investment Corporation (GIC). Since the Government also make injections into Temasek as well as equity transfers, like SEL, could there be a situation now whereby CPF liabilities may be in excess of the assets from which they are meant to be satisfied in the first place?
In conclusion I would like to cite some figures from the Department of Statistics’ Singapore Yearbook of Statistics 2010.
According to the book, the amount of CPF due to members has grown by 89 percent, from $88 billion to $167 billion from 1999 to 2009. Around the same time, Singapore’s public debt, which is entirely domestic, grew by 132 percent from $126 billion to $292 billion from 1999 to 2009.
Coincidence?
Indonesia
Miss Universe cuts ties with Indonesia chapter after harassment allegations
The Miss Universe Organization severs ties with Indonesia franchise due to harassment claims. Malaysia edition canceled.
Women allege body checks before pageant. Investigation launched. Safety prioritized.
Indonesia winner to compete in November finale. Height requirement controversy.
WASHINGTON, UNITED STATES — The Miss Universe Organization has cut ties with its Indonesia franchise, it announced days after allegations of sexual harassment, and will cancel an upcoming Malaysia edition.
In the complaint, more than a half dozen women said all 30 finalists for Miss Universe Indonesia were unexpectedly asked to strip for a supposed body check for scars and cellulite two days before the pageant’s crowning ceremony in Jakarta.
Their lawyer said Tuesday that five of the women had their pictures taken.
“In light of what we have learned took place at Miss Universe Indonesia, it has become clear that this franchise has not lived up to our brand standards, ethics, or expectations,” the US-based Miss Universe Organization posted Saturday night on social media site X, formerly known as Twitter.
It said that it had “decided to terminate the relationship with its current franchise in Indonesia, PT Capella Swastika Karya, and its National Director, Poppy Capella.”
It thanked the contestants for their bravery in coming forward and added that “providing a safe place for women” was the organization’s priority.
Jakarta police spokesman Trunoyudo Wisnu Andiko said Tuesday that an investigation into the women’s complaint has been launched.
The Indonesia franchise also holds the license for Miss Universe Malaysia, where there will no longer be a competition this year, according to the New York-based parent organizer.
In a lengthy statement posted to Instagram, Indonesia franchise director Capella denied involvement in any body checks.
“I, as the National Director and as the owner of the Miss Universe Indonesia license, was not involved at all and have never known, ordered, requested or allowed anyone who played a role and participated in the process of organizing Miss Universe Indonesia 2023 to commit violence or sexual harassment through body checking,” she wrote.
She added that she is against “any form of violence or sexual harassment.”
The Jakarta competition was held from 29 July to 3 August to choose Indonesia’s representative to the 2023 Miss Universe contest, and was won by Fabienne Nicole Groeneveld.
Miss Universe said it would make arrangements for her to compete in the finale, scheduled for November in El Salvador.
This year’s Indonesia pageant also came under fire for announcing a “significant change in this (year’s) competition guidelines” with the elimination of its minimum height requirement after it had crowned a winner.
In its statement, the Miss Universe Organization said it wanted to “make it extremely clear that there are no measurements such as height, weight, or body dimensions required to join a Miss Universe pageant worldwide.”
— AFP
Malaysia
A Perodua service centre in Kuantan, Malaysia went viral for its strict dress code, Perodua responds
A dress code for vehicle servicing? A Malaysian car brand’s service centre dress code signage has puzzled netizens, raising queries about the need for attire rules during a routine service.
The manufacturer responded with an official statement after a flurry of comments, seeking to clarify and apologize.
MALAYSIA: A dress code signage positioned at a service centre belonging to a prominent Malaysian car brand has sparked bewilderment among Malaysian netizens, who question the necessity of adhering to attire guidelines for a simple vehicle servicing.
The signage explicitly delineates clothing items that are deemed unsuitable, including sleeveless tops, short skirts, abbreviated pants, and distressed jeans.
The car manufacturer swiftly found itself flooded with comments from both inquisitive and irked Malaysian netizens. This surge in online activity prompted the company to issue an official statement aimed at clarifying the situation and extending an apology.
In a post that gained significant traction on the social media platform, politician Quek Tai Seong of Pahang State, Malaysia, shared an image to Facebook on Monday (7 Aug).
The image showcased a dress code sign prominently displayed at a Perodua Service Centre in Kuantan. Within the post, Quek posed the question: “Is this dress code applicable nationwide, or is it specific to this branch?”
The signage reads, “All customers dealing with Perodua Service Kuantan 1, Semambu, are requested to dress modestly and appropriately.”
Adding visual clarity to these guidelines, the sign features illustrative graphics that explicitly outline clothing items deemed unacceptable, including sleeveless tops, short skirts, short pants, and ripped jeans.
Delineating the specifics of the dress code, the signage stipulates that male visitors are expected to don shirts accompanied by neckties, opt for long pants, and wear closed shoes.
Conversely, female visitors are advised to don long-sleeved shirts, full-length skirts, and closed-toe footwear.
Perodua’s dress code sparks online uproar
Following the rapid spread of the post, Perodua’s official Facebook page found itself inundated with comments from both intrigued and frustrated Malaysian netizens, all seeking clarifications about the newly surfaced dress code policy.
Amidst the flurry of comments, numerous incensed netizens posed pointed questions such as, “What is the rationale behind the introduction of such regulations by the management? We demand an explanation.”
Another netizen expressed their dissatisfaction, arguing against the necessity of the rule and urging Perodua to take inspiration from the practices of other 4S (Sales, Service, Spare Parts, and Survey) automotive dealerships.
A concerned Facebook user chimed in, advocating for a more lenient stance, asserting that attempting to dictate customers’ clothing choices might not be in the company’s best interest.
Someone also commented in an angry tone, “Oi what is this? Going there for car service, not interview or working, right.”
As the discourse unfolded, it became evident that while some inquiries carried genuine weight, others chose to inject humor into the situation, playfully remarking, “If I wanted to buy a Myvi, I should buy or rent a formal attire first.”
“I sell economy rice at a hawker centre, I have never worn a long sleeve shirt and a tie… I guess I will not buy a Perodua car then.”
“I guess they will not serve those who wear short pants.”
Perodua addresses dress code controversy
As reported by Chinese media outlet Sin Chew Daily News, the manager of Kuantan’s Perodua Service Centre had acknowledged that the images on the dress code signage were misleading.
In response, the manager divulged that discussions had transpired with the head office, leading to the prompt removal of the signage to prevent any further misconceptions.
The manager clarifies, “We do encourage visitors to adhere to the dress etiquette, but we won’t go to the extent of restricting their choice of attire.”
He also revealed that currently, no complaints have been directly received from the public.
However, feedback from certain customers was relayed through Perodua’s agents.
Perodua also released an official statement by chief operating officer JK Rozman Jaffar on Wednesday (9 Aug) regarding the dress code on their official Facebook page.
The statement stated the dress code etiquette is not aligned with their official guidelines and they are currently conducting an official investigation on the matter followed by corrective measures to avoid the same incident from happening.
Perodua also extends its apologies for any inconvenience caused.
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